You may have a rough idea of how you want your estate to be distributed after you die. However, none of that will matter if you do not leave behind a proper estate plan. The state’s intestacy laws will determine the division of your property. Here is how this plays out in Oregon.
First, the court will appoint a personal representative to administer and manage your estate. They will be responsible for gathering your assets, paying outstanding debts and distributing the remaining property to your loved one. There is a specific order of inheritance as the law prioritizes close relatives.
If you are married without children, your spouse inherits the entire estate. If you have children, your spouse will get half while your children share the other half equally. If you have no spouse or children, your estate goes to your parents. Siblings and distant relatives follow in the order of succession. If no relatives can be found, your estate reverts to the state of Oregon.
Avoid unintended consequences
Dying without an estate plan can result in disputes among family members who may feel shortchanged by the division prescribed by law. It can lead to strained relationships and costly, time-consuming legal battles.
You will also lose control over key decisions when you die intestate. For instance, if you have minor children, the court will decide who becomes their guardian without considering your preferences. For loved ones with special needs, there will be no guarantee of their care and support after you are gone.
Lastly, there is a likelihood of unintended beneficiaries, a higher tax burden on your estate and delays in distributing your assets to loved ones when you don’t leave behind a proper estate plan.
It’s never too early to start planning
Despite these risks of dying intestate, more than 60% of Americans do not have an estate plan. Don’t be part of this statistic; it’s your loved ones who will pay the heaviest price. Seeking legal guidance can provide invaluable assistance and personalized support if you are unsure where to begin.